The rapid expansion of artificial intelligence infrastructure projects around the world is driving shortages of memory and storage components that are expected to persist until 2027, South African technology distributor Mustek has warned.
The shortages are affecting product availability and pricing in key component categories, the JSE-listed group said in its results for the six months to 31 December 2025, published on Wednesday.
“Global supply-chain disruptions continue to drive component shortages, particularly memory and storage components, due largely to the rapid expansion of global AI infrastructure projects,” the group said. “These shortages are expected to continue into 2027, reinforcing the need for strong local distribution partnerships that can help stabilise pricing and improve supply resilience.”
Mustek said its “deeply integrated distribution model” helps manage the fluctuations more predictably, but acknowledged that supply and pricing conditions in memory and storage continued to influence both product availability and margin outcomes during the period.
The group also used its results commentary to flag what it sees as a growing gap between AI adoption ambitions and the skills needed to deliver on them. “A substantial talent shortage across AI and related fields continues to hinder full-scale integration,” Mustek said.
As part of its response to the AI opportunity, Mustek recently acquired a 51% stake in Business AI for R8-million. The start-up is building a dedicated business-to-business marketplace portal for AI services, giving enterprises a single environment to access vetted AI vendors, products, platforms, solution providers and data centres.
Profits surge
“This accredited portal model ensures that businesses can adopt AI with confidence, knowing that each listing has been reviewed for quality, relevance and security before becoming accessible,” Mustek said. The subsidiary’s results for the period largely comprised start-up costs.
Mustek also highlighted escalating cybersecurity threats, noting that many South African organisations remain underprepared to counter increasingly sophisticated, AI-driven attacks. Revenue from managed cybersecurity services nearly doubled to R25.7-million from R14.6-million in the prior period.
Read: Mustek-backed AI marketplace launched in South Africa
Despite the supply-chain headwinds, Mustek’s profitability improved sharply in the half year, with headline earnings per share surging 256% to 83.54c from 23.47c in the prior year’s period.
The improvement came despite a 2.4% decline in revenue to R3.54-billion, and was driven by a combination of cost discipline – operating expenses fell 4.1% to R364.9-million – a R63.8-million swing in foreign currency outcomes from a loss to a gain, and a 42.4% reduction in net finance costs to R48-million.
Gross profit margin, however, softened to 12.6% from 13.9%, primarily due to R62-million in inventory-related provisioning, which the group described as consistent with prudent stock management and balance sheet discipline. – © 2026 NewsCentral Media
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